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School board says SchoolCare assessment of $1.64 million requires legal review; explores alternative insurance options
Summary
Chair Brodie Deshaies read a statement saying SchoolCare projected a $4.5 million deficit and issued a $30 million pro‑rata assessment; Governor Wentworth received an $1,642,316.20 bill. The board has asked legal counsel for additional justification and directed administrators to plan contingencies while exploring alternatives with unions.
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The Governor Wentworth Regional School Board on Oct. 6 said it received an $1,642,316.20 assessment from SchoolCare and has not yet determined whether it is legally obligated to pay.
Board Chair Brodie S. Deshaies read a prepared statement to the assembled board and public explaining that SchoolCare, a governmental risk pool that purchases health insurance and submits claims for participating public entities, informed members of a projected $4.5 million deficit and a plan to issue a $30 million pro‑rata contribution assessment to members as of June 30, 2025. "SchoolCare has a projected $4.5 million deficit to close their fiscal year," Deshaies said. He added that SchoolCare informed members it would issue a $30 million assessment to restore reserves to 12% of member contributions and that most members would face an assessment roughly equal to one and one‑half months of contributions.
"Governor Wentworth received a bill, or assessment, a week later, on October 1, for $1,642,316.20," Deshaies said. He quoted SchoolCare's terms that payment is requested upon receipt but that a 90‑day grace period is being offered, and that after Jan. 1, 2026 unpaid balances will accrue 0.5% interest per month.
The board said it has met with legal counsel and continues to receive legal guidance as information develops. "At this juncture, the Board has not yet received sufficient legal justification from SchoolCare that it has the legal authority to assess its members or that members are contractually or legally obligated to pay an assessment issued by SchoolCare," Deshaies said. The board instructed counsel to request additional justification and other relevant documents from SchoolCare for review.
Superintendent Caroline Arakelian and administrators were asked to begin planning financing scenarios in case the district is legally or contractually required to pay the assessment or if the board decides payment is in the district's best interest. Deshaies said any plan would be constructed "to have the least impact on students and existing services," and that the board would consult the New Hampshire Department of Revenue Administration and the state Education Department as part of its review. He said a decision and any payment plan would likely come to the board at a regular meeting in November or December.
The assessment notice and the board's response also accelerated consideration of alternative insurance approaches. The board previously, in non‑public session, empowered the Human Resources committee to engage the three bargaining units (GWAT, GWEA, GWSSA) about exploring other insurance options. Deshaies said those discussions will be initial and collaborative and will aim to identify approaches that best serve employees and taxpayers.
Next steps: board counsel will request documentation from SchoolCare about its legal authority to issue assessments; administrators will prepare contingency plans for review at an upcoming board meeting. The board did not approve payment at the Oct. 6 meeting.
